Hydro Power and Wind Power Companies shares are likely to underperform and discourage investors for short to medium term. They will become hot sectors after few years when the prices of traditional sources of energy such as crude oil, natural gas, coal etc skyrocket due to increasing demand and declining supply and production. Also the ROE Return on Energy would decline i.e. more than one dollar would be required to produce 1 dollar worth of crude or coal. At those times the wind power, hydropower, and solar power companies would start attracting investments (in fact they already have). Invention of newer and advanced technology would enable and support use of power generated from solar systems.
Showing posts with label solar. Show all posts
Showing posts with label solar. Show all posts
Jun 4, 2010
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